I’ll bet you don’t know.
By Christopher Davis
Some might say: “Well, you know … it’s that stuff we work for and buy things with. What else do you need to know,” and they would be right, but the more you know about money the more of it you’re likely to have. If that idea interests, you then read on.
What is it exactly that changes hands and people give you things for?
To begin with, this stuff we call money could be paper money, but in today’s world we’re mostly talking about electronic or digital money, but whether it’s paper or digital, what is it really?
As Sean Worthington, (who you’ll find out more about later,) has defined it. He says:
Money is DATA.
This is quite important definition, and one with an important distinction, because viewing money through this definition makes a big difference because it can help to reduce complicated and confusing economic theories into an understandable set of laws that are much easier to apply, and much more fair or just.
These are the laws of data management, but we’re not talking about just any data, it’s data about VALUE …. Let’s call it “Value Data.”
We acquire value data through work or by providing others with things they want. We exchange our value data for the things that we want, and we store some value data away for our future needs. This isn’t a totally strange idea, we sometimes hear it in our normal speech, with things like “How valuable is your time? Or What’s the value of that _____?
In a way, unless you’re mismanaging your finances, the amount of money you have might not be saying how wealthy you are, instead it might be saying how valuable others think you are.
You could almost ask someone, how much value do you have in your pocket, or how much value do you have in your bank account?
This tells us two things. Money is data about value … or “value data” and that money changes hands based upon confidence concerning value.
This gives us six scientific laws (1).
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That data or “value data” tells us that some person or legal entity (Corporation, etc.) has apparently produced something of value which has been exchanged with the society and that the value data has been transferred to, and credited to, the creator and now exists in a form that we call money.
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That the “value data” called money is stored somewhere, or in several places, like in your pocket or in your bank account. Value data can take different forms, such as stock certificates, bonds, deeds of trust, etc., but the most liquid, meaning the most easily transferrable form of value data, is simply called money.
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That value data is exchangeable. I can hand someone paper currency, write them a check or use a credit card. In each case I would be transferring title (ownership) of data … value data.
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That kind of data informs us that something has a value, a value which is indexed against our needs or desires, and existing within a defined market, nationally, regionally, locally, industrially, etc. For example, the price put on the value of an ear of corn would be quite different in the middle of a farming community than at a supermarket in a big city, and that same kind of corn might be less expensive at one market than another. Price data is therefore an indicator of value that one can use in making comparisons, drawing conclusions and acting. It’s therefore also important as a guide.
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That like all data, it can be correct or incorrect, and that the management of data follows (or should follow) very specific rules for it to maintain its integrity.
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That if “value data” is intentionally or unintentionally corrupted it can cause disruptions on a personal, local, regional, or industry-wide, national, or international basis.
These six laws are knowingly or unknowingly used by people or business entities to manage their own economic universes, which are often referred to as their budgets.
Modern society only exists because of “value Data” systems.
Most importantly, it is with this use of this data that we create and operate an economy, be it a home, a business, a state, a nation or a world. Without this value data, we couldn’t have much beyond a village or small community. This is because it’s exchangeable value data that makes trade possible to reach beyond the limitations of simple bartering.
Value data systems can operate over vast distances because as members of humanity we have many common needs and drives, which allow us to compare and evaluate the values connected to them. The most basic of course is simply to survive. There’s lots of agreement on life’s needs.
You could call it the economics of survival.
We survive in many ways and there are obviously degrees of survival to consider.
Keeping it simple, in an ever-changing world, the only guarantee of survival is abundance, as in abundant crops, abundant livestock, abundant clean air and water, abundant shelter, abundant knowledge, etc. When we produce or present things that enhance survival and make it more pleasurable, we create value.
The word economy embraces three things:
1. The wealth and resources of a country or region, like its farm lands, its mineral resources, its industrial capacity, its manpower, its brain trust, and its forests.
2. The production and consumption of goods and services.
3. The careful management of available resources.
Something that produces the best value for the money is or should be the economic choice. On an individual or family level that might manifest in purchasing an “economy pack” at the market.
The only thing that produces, (or should produce,) “Value Data” in a society is the production of:
A) some sort of a valuable product,
B) some sort of valuable service,
C) the efforts that are put toward the preservation of valuable resources.
In a logical economic society, the money would flow to A), B), and C). Things like education would likely fall under B, but would embrace all three, because the product of a good educational system is an educated people, which is a valuable national resource.
Confidence in true value is the key
Cryptocurrencies were born out of a need for systems that provide confidence.
They are sometimes referred to as trust-free systems.
Viable world trade depends upon having economic communication systems that are as corruption free as possible and allow verifiable value data to be freely and easily exchanged among people, businesses and nations. Today’s financial systems represent the primary bottleneck to free and prosperous trade. To say that there is little trust in banking or central bankers us an understatement. Today’s centralized systems have allowed for rampant corruption on a national and international scale. The results of this corruption are war, poverty, homelessness, insane housing costs, unfair taxation, unpayable national debt, and a litany of other human woes.
What about inflation, bubbles, recessions, and depressions?
“The following excerpt from Sean Worthington’s book, discusses it in terms of database management.”
NOTE: Sean Worthington is a computer scientist and has been teaching computer science in community colleges for over 20 years. While working on his dissertation for his PhD in computer information systems, he realized that monetary systems are just information systems and that the rules used to create information systems could be applied to money. Mr. Worthington also created the first Model for Perfect Currency, invented and patented a new Superbase data structure called RAIDA that allows for a new digital cloud currency called CloudCoin.
He is the author of Beyond Bitcoin: The Future of Digital Currency.
In his book, he describes the perfect currency, how it relates to database management and what it means to all our lives. In the future, it will be thought of as a historical document.
Here’s that short excerpt:
“One of the inherent problems facing all modern currencies is the way in which new money is created, and who gets this newly created money.
According to the theory, the perfect money cannot be created or destroyed, except at its inception (minting), unless the money is split so that all people end up with the exact same proportion of money - just more of it. The primary purpose of money is to track who gets what proportion of the total output based on their total input.
The opposite of this is a system where money (data) is created and introduced to the system at the expense of everyone else. These types of systems (which dominate the world now more than ever) inadvertently cause logical errors, negative feedback loops, and submersion of the economy.
In economics, these phenomena are often known as inflation, price inflation or bubbles.
Sometimes economists argue about what inflation is.
Is it something that occurs when there is more money? Is it something that happens when prices are higher?
Both of these assumptions are wrong, and economists need to turn to information systems to understand the situation.
Remember that money is data. If data appears without valid input in an information system, we call this an anomaly.”
What’s next?
The next step is simple and its free. Get a free copy of Sean’s book.
Beyond Bitcoin: The Future of Digital Currency.
You owe it to yourself to learn more about the paradigm changing things that are occurring with something that is so intimate to your life.
This is not about a new car or a new way to use solar. Those are important but this is about your financial future and the financial future of those around you.
There’s not too many things that are much more intimate than your finances.
The book offers a fresh look at economics. One that slices through much of the unintentional and intentional confusions to be found in conventional financial circles. We now live in a rapidly changing world that is often communicating in Fin-speak which is the language now used in the world of Fintech solutions.
Sean’s book also provides the reader an inside look at the secrets, the dangers and the opportunities of the new crypto and digital currencies.
Here’s how to find out more. Click on the YouTube link below for a one minute introduction to the book which will tell you how to get your free copy plus more.
https://www.youtube.com/watch?v=qo3Aj-ozMF0
Glossary
(1) A scientific law is a statement based on repeated experimental observations that describes some aspect of the world. A scientific law always applies under the same conditions, and implies that there is a causal relationship involving its elements.
economics, fintech, cryptocurrency, money, data management, value data, barter, inflation, bubbles, depressions, CloudCoin, RAIDA, Sean Worthington.
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